We study the minimal/endogenous solution R to the maximum recursion on weighted branching trees given by R=D(⋁i=1NCiRi)∨Q, where (Q,N,C1,C2,…) is a random vector with N∈N∪{∞}, P(|Q|0)0 and nonnegative weights {Ci}, and {Ri}i∈N is a sequence of i.i.d. copies of R independent of...

Consider the linear nonhomogeneous fixed-point equation R=D∑i=1NCiRi+Q, where (Q,N,C1,C2,…) is a random vector with N∈{0,1,2,3,…}∪{∞},Ci≥0 for all i∈N, P(|Q|0)0, and {Ri}i∈N is a sequence of i.i.d. random variables independent of (Q,N,C1,C2,…) having the same distribution as...

This paper addresses the statistical properties of time series driven by rational bubbles a la Blanchard and Watson (1982). Using insights on the behavior of multiplicative stochastic processes, we demonstrate that the tails of the unconditional distribution emerging from such bubble processes...

Recognizing the need to improve the quality of financial disclosure by private sector firms in Latin America and the Caribbean, the Inter-American Development Bank sponsored a conference in September 29-30, 1997 entitled Financial Disclosure and the Development of Financial Markets: The Impact...

We study whether clarity of central bank inflation reports affects return volatility in financial markets. We measure clarity of reports by the Czech National Bank, the European Central Bank, the Bank of England, and Sveriges Riksbank using the Flesch-Kincaid grade level, a standard readability...

The template presented in this note is concerned with the evaluation of the sustainability of total government debt, regardless of whether the creditor is a domestic or foreign resident, a public or private entity or the jurisdiction where the debt was issued (in the case of bonded debt). The...

Recognizing the need to improve the quality of financial disclosure by private sector firms in Latin America and the Caribbean, the Inter-American Development Bank sponsored a conference in September 29-30, 1997 entitled Financial Disclosure and the Development of Financial Markets: The Impact...

This paper analyzes the welfare effects of a public smoking ban in bars. We construct a model that captures crucial features of bar life: competing bars, social interaction, and heterogenous preferences for a smoking ban. Smokers and non-smokers simultaneously choose a bar given their...

Empirical studies indicate that the transition to parenthood is influenced by an individual's peer group. To study the mechanisms that create interdependencies across individuals' transition to parenthood and its timing we apply an agent–based simulation model. We build a one-sex model and...